Mortgage lender outlooks improved during the first quarter of 2015, according to a new sentiment survey from government sponsored enterprise Fannie Mae.
The percentage of lenders who though mortgage demand would improve in the next three months climbed 12%, to 71%, from the same time last year Fannie Mae reported. About twice as many lenders—41%--also reported increased profit margin expectations. Overall mortgage executives also feel more optimistic about the overall economy than borrowers do.
The survey sampled a universe of 208 senior executives representing 197 lenders with varying origination volume. Participants were polled from Feb. 4-16.
Expectations of increased purchase mortgages using products all three major investor segments - government-sponsored enterprise, private and government - was seen across institutions of all kinds and sizes. Mortgage banks also continue to be more likely to provide access to credit than other types of banks.
"The first quarter results mirror a similar trend among American households, as shown in our recently released national housing survey data," said Fannie Mae senior vice president and chief economist Doug Duncan in a press release. "These results are consistent with our view that an improving economy, strengthening employment, and increasing consumer confidence should support a modest housing expansion in 2015, after an uneven and disappointing year for housing activity in 2014."
